招商轮船(601872) - 2025 Q2 - 季度财报

Important Notice The company provides key information regarding director attendance, profit distribution, forward-looking statements, and significant risks Absence of Directors During the reporting period, two directors were unable to attend board meetings due to business reasons and delegated their attendance to other directors Absence of Directors | Position of Absent Director | Name of Absent Director | Reason for Absence | Name of Delegate | | :--- | :--- | :--- | :--- | | Director | Liu Zhenhua | Business reasons | Qu Baozhi | | Director | Zhong Fuliang | Business reasons | Chen Xue | Profit Distribution Plan The board approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of 0.7 yuan (tax inclusive) per 10 shares, totaling 565 million yuan - The 2025 semi-annual profit distribution plan proposes a cash dividend of RMB 0.7 yuan (tax inclusive) per 10 shares[4] - Total cash dividends distributed amounted to 565.2177 million yuan[4] - Total cash dividends and share repurchases for the first half of the year amounted to 875.7643 million yuan, representing 41.22% of the net profit attributable to listed company shareholders for the first half of the year[4] Forward-Looking Statements Risk Disclaimer The company cautions investors that forward-looking statements regarding strategy, plans, and market outlook do not constitute substantive commitments and involve investment risks - Forward-looking descriptions in this report, such as company strategies, plans, market outlooks, and operating revenue targets, do not constitute substantive commitments to shareholders, potential investors, or other report users, and investors are advised to be aware of investment risks[5] Significant Risk Warning The report elaborates on industry and market risk factors, advising investors to review relevant sections - This report has elaborated on industry and market risk factors, and investors are advised to refer to the relevant sections[7] Section I Definitions This section defines common terms used in the report, covering company entities, shipping terminology, vessel types, freight indices, and international maritime conventions - This section provides detailed explanations of various professional terms used in the report, including company abbreviations, subsidiary names, vessel types (e.g., VLCC, VLOC, LNG carriers), freight indices (e.g., BDI, BDTI), and international maritime conventions (e.g., Ballast Water Management Convention, Sulfur Cap Convention), ensuring clarity and accuracy of information disclosure[12][13] Section II Company Profile and Key Financial Indicators This section provides company basic information, contact details, registration, and office addresses, along with key accounting data and financial indicators for H1 2025 I. Company Information This section provides the company's Chinese name, abbreviation, foreign name, and legal representative information Company Basic Information | Company's Chinese Name | China Merchants Energy Shipping Co., Ltd. | | :--- | :--- | | Company's Chinese Abbreviation | CMES | | Company's Foreign Name | China Merchants Energy Shipping Co.,Ltd. | | Company's Foreign Name Abbreviation | CMES | | Legal Representative | Feng Boming | VII. Key Accounting Data and Financial Indicators The company's H1 2025 key accounting data and financial indicators show a decrease in revenue and net profit, but an increase in total assets and net assets attributable to shareholders 2025 H1 Key Accounting Data | Indicator | Current Period (Jan-Jun, yuan) | Prior Period (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 12,584,631,566.78 | 13,234,502,985.71 | -4.91 | | Total Profit | 2,478,941,836.85 | 2,965,112,917.66 | -16.40 | | Net Profit Attributable to Listed Company Shareholders | 2,124,568,286.95 | 2,496,931,505.79 | -14.91 | | Net Profit Attributable to Listed Company Shareholders After Non-Recurring Gains/Losses | 1,906,183,512.83 | 2,444,700,614.13 | -22.03 | | Net Cash Flow from Operating Activities | 3,526,386,301.93 | 4,097,235,845.09 | -13.93 | | Net Assets Attributable to Listed Company Shareholders (Period-End) | 40,460,933,301.98 | 40,043,682,654.46 | 1.04 | | Total Assets (Period-End) | 77,880,338,240.88 | 70,619,308,351.63 | 10.28 | 2025 H1 Key Financial Indicators | Key Financial Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic EPS (yuan/share) | 0.26 | 0.31 | -16.13 | | Diluted EPS (yuan/share) | 0.26 | 0.31 | -16.13 | | Basic EPS After Non-Recurring Gains/Losses (yuan/share) | 0.23 | 0.30 | -23.33 | | Weighted Average ROE (%) | 5.28 | 6.53 | Decrease of 1.25 percentage points | | Weighted Average ROE After Non-Recurring Gains/Losses (%) | 4.66 | 6.39 | Decrease of 1.73 percentage points | IX. Non-Recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled 218 million yuan for the period, primarily from disposal of non-current assets and government grants 2025 H1 Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains/Losses Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets, including the write-off portion of asset impairment provisions | 158,882,140.60 | | Government grants recognized in current profit or loss | 39,071,169.40 | | Fund occupation fees collected from non-financial enterprises recognized in current profit or loss | 16,434,404.54 | | Other non-operating income and expenses apart from the above | 4,959,531.71 | | Less: Income tax impact | 797,137.74 | | Minority interest impact (after tax) | 165,334.39 | | Total | 218,384,774.12 | - The disposal of an aging Aframax oil tanker during the reporting period contributed 159 million yuan in gains from disposal of non-current assets[25] Section III Management Discussion and Analysis This section reviews H1 2025 international shipping market performance across segments, details the company's fleet operations, development, strategies, and outlook, and analyzes core competencies, financial changes, and risks I. Industry and Main Business Operations During the Reporting Period This section analyzes the overall international shipping market and its segments in H1 2025, including crude oil, dry bulk, LNG, ro-ro, and container shipping, and outlines the company's business strategies and fleet development (I) International Shipping Market Conditions In H1 2025, the international shipping market saw a 5% decline in the Clarkson Shipping Index and a 31% drop in the irregular vessel market index, with varied performance across segments due to geopolitical and trade factors - In H1 2025, the Clarkson Shipping Index slightly decreased by 5% year-on-year to USD 24,101/day; excluding the container ship market, the Clarkson Shipping Index, which primarily reflects the irregular vessel market's prosperity, significantly decreased by 31% year-on-year to USD 17,409/day[27] - International crude oil seaborne trade volume remained generally stable, averaging approximately 42.3 million barrels/day in the first half of the year, a slight decrease of 1.6% compared to the annual average trade volume of the previous year[28] - The average BDTI for crude oil tankers in the first half of the year was 969, a year-on-year decrease of 21.3%; VLCC, Suezmax, and Aframax vessel types saw TCE decreases of 9.99%, 18.32%, and 31.00% year-on-year, respectively[33] - In H1 2025, the average BDI was 1,290 points, global dry bulk seaborne trade volume increased by 0.1% year-on-year, while China's major dry bulk imports decreased by 3% year-on-year[35] - In H1 2025, the average spot charter rate for 174,000 cubic meter two-stroke LNG carriers was USD 24,606/day, a year-on-year decrease of 56%[38] - In H1 2025, global automobile sales increased by 2.1% year-on-year, with China's automobile exports reaching 3.083 million units, a year-on-year increase of 10.4%[39] - In H1 2025, the global ro-ro shipping market experienced a rapid downturn, with 1-year time charter rates for 5,000 CEU and 6,500 CEU ro-ro vessels decreasing by 40-50% compared to the beginning of the year[40] - In H1 2025, global container seaborne trade volume increased by 2.8% year-on-year, but the growth rate significantly slowed compared to 6.2% in 2024[41] - In H1 2025, the China Containerized Freight Index (CCFI) decreased by 12% compared to the beginning of the year[42] (II) Main Business Operations The company's core businesses are oil and gas transportation and dry bulk shipping, supplemented by container and ro-ro services, with each fleet enhancing competitiveness through market-oriented operations, fleet optimization, customer expansion, and digitalization - The company's oil tanker fleet maintains 52 VLCCs owned, operated, and managed, continuing to rank first globally[47] - The world's first methanol dual-fuel VLCC is under construction and expected to be delivered and operational by the end of this year, further improving the oil tanker fleet structure[47] - The company currently operates and manages 37 VLOC vessels, maintaining its position as the world's largest fleet owner[48] - As of the end of the reporting period, CMES Gas Transportation has invested in 64 LNG vessels (61 of which have secured long-term time charter contracts), establishing its significant shipowner status in the LNG transportation market[49][70] - The ro-ro transportation fleet strengthens market marketing and optimizes routes, expanding into Southeast Asia, the Middle East Red Sea, European Mediterranean, and American East Coast markets, actively exploring transportation demand in commercial vehicles, large passenger buses, and construction machinery segments[49][50] - The container ship fleet's service network covers major coastal ports in China to countries and regions including Japan, South Korea, Australia, India, Mexico, the Philippines, Vietnam, Thailand, Malaysia, Singapore, Taiwan (China), and Hong Kong (China)[50] - Cloud Chain Digital Technology continues to empower main business operations, accelerating the creation of a smart shipping ecosystem, and actively participating in stablecoin research to explore building a digital product matrix[76] II. Discussion and Analysis of Operations This section details the development and operations of the company's oil tanker, dry bulk, LNG, car carrier, and container fleets, provides market outlooks for oil tankers and dry bulk, and outlines digital empowerment progress and segment-wise revenue and profit - During the reporting period, the company received 1 62,000 DWT heavy-lift multi-purpose vessel and 1 LNG vessel for the Kaqi project, and completed the sale of an aging, non-energy-efficient Aframax oil tanker[50] - As of the end of the reporting period, the company owned 52 operational VLCC oil tankers and owned and controlled 37 VLOCs, with its equity VLCC and VLOC fleet size continuing to rank first globally[50] - During the reporting period, the company's fleet completed a total cargo volume of 104.7522 million tons, a year-on-year increase of 6.66%; turnover reached 543.244 billion ton-miles, a year-on-year increase of 2.69%[53] - The VLCC TCE level of the oil tanker fleet decreased year-on-year but remained significantly higher than the market index[54] - The dry bulk fleet's VLOCs achieved an additional 65.21 million yuan in TCE revenue in the first half of the year through measures such as using high-efficiency anti-fouling paint; the Capesize fleet's TCE level outperformed the market index by 12.86%; and the Ultramax fleet's TCE led the market average by 26.86%[64] - CMES Ro-Ro completed 57,900 vehicles in foreign trade volume, a year-on-year increase of 26%; coastal volume was 153,000 vehicles, a year-on-year decrease of 18%; and Yangtze River volume was 119,100 vehicles, a year-on-year decrease of 11%[71] - Sinotrans Container Lines transported a cumulative 544,000 TEU of heavy containers, a year-on-year increase of 12.7%, with its fleet capacity ranking among the top 30 globally[72] - Cloud Chain Digital Technology's "Ship Carbon Intelligence" platform serves over 2,000 vessels and has begun generating external operating revenue[76] 2025 Main Business Segment Revenue and Profit Breakdown (Unit: billion yuan) | 2025 | Q1 | Q2 | H1 | | :--- | :--- | :--- | :--- | | Oil Tanker Shipping | | | | | Operating Revenue | 2.137 | 2.306 | 4.443 | | Net Profit | 0.487 | 0.806 | 1.293 | | Dry Bulk Shipping | | | | | Operating Revenue | 1.68 | 2.021 | 3.701 | | Net Profit | 0.159 | 0.263 | 0.422 | | Container Shipping | | | | | Operating Revenue | 1.138 | 1.882 | 3.02 | | Net Profit | 0.335 | 0.293 | 0.628 | | Ro-Ro Shipping | | | | | Operating Revenue | 0.399 | 0.417 | 0.816 | | Net Profit | 0.053 | 0.053 | 0.106 | | LNG Shipping | | | | | Operating Revenue | - | 0.003 | 0.003 | | Net Profit | 0.143 | 0.177 | 0.32 | III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness stems from its diversified and resilient business portfolio, with leading market positions and operational expertise across its oil, gas, dry bulk, LNG, ro-ro, and container fleets, supported by strong synergy, capital strength, and transparent governance - The company's oil and gas segment boasts a world-leading proprietary VLCC fleet, with equity vessel numbers leading globally, and a fleet structure and age profile superior to most peers[79] - The LNG fleet is steadily building its proprietary LNG fleet, with vast future development potential[79] - The dry bulk transportation segment has entered the world's top tier in scale, with steadily improving market operating capabilities and sustained profitability[79] - The company has initially formed a comprehensive fleet layout of oil, dry bulk, gas, car carriers, and containers, with oil and gas transportation and dry bulk transportation as dual core businesses, enabling synergistic customer service and supply chain expansion[81] - The company's core oil tanker and dry bulk fleets possess over 40 years of international market operating experience, while its container and car carrier fleets also have over 20 years of operating history, having navigated multiple shipping cycles with rich experience in responding to market fluctuations[83] - The company has long used Hong Kong as its primary operating base, focusing on cultivating international talent, maintaining a lean and efficient onshore management structure, continuously improving marketization, and ensuring high information disclosure transparency[84] IV. Key Operating Performance During the Reporting Period This section analyzes the company's H1 2025 key operating performance, including changes in financial statement items, asset and liability status, overseas assets, investment activities, and significant asset and equity disposals, along with an analysis of major subsidiaries and associates (I) Main Business Analysis During the reporting period, the company's operating revenue decreased by 4.91% due to a downturn in the oil tanker and dry bulk markets, while operating costs increased by 0.17% due to more owned and long-term chartered vessels Financial Statement Item Variation Analysis | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 12,584,631,566.78 | 13,234,502,985.71 | -4.91 | | Operating Cost | 9,621,700,508.25 | 9,605,846,171.88 | 0.17 | | Selling Expenses | 55,063,790.07 | 52,069,139.87 | 5.75 | | Administrative Expenses | 463,243,415.10 | 485,802,967.14 | -4.64 | | Financial Expenses | 521,291,664.51 | 502,797,690.97 | 3.68 | | R&D Expenses | 7,885,114.15 | 6,939,732.28 | 13.62 | | Net Cash Flow from Operating Activities | 3,526,386,301.93 | 4,097,235,845.09 | -13.93 | | Net Cash Flow from Investing Activities | -2,627,944,840.09 | -3,715,909,714.84 | 29.28 | | Net Cash Flow from Financing Activities | 1,561,474,885.34 | 880,745,185.79 | 77.29 | - Operating revenue decreased by 4.91% year-on-year, mainly due to the downturn in the oil tanker and dry bulk markets[86] - Net cash inflow from operating activities decreased by 13.93% year-on-year, mainly due to reduced revenue from oil tanker transportation business[87] - Net cash inflow from financing activities increased by 77.29% year-on-year, mainly due to a significant increase in bank borrowings during the reporting period compared to the same period last year[88] (III) Analysis of Assets and Liabilities At the end of the reporting period, total assets increased by 10.28% and net assets attributable to shareholders increased by 1.04%, with significant changes in monetary funds, accounts receivable, construction in progress, and various liabilities Asset and Liability Variation | Item Name | Current Period End Amount (yuan) | Current Period End % of Total Assets | Prior Period End Amount (yuan) | Prior Period End % of Total Assets | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 7,050,800,766.37 | 9.05 | 4,589,226,803.24 | 6.50 | 53.64 | | Accounts Receivable | 1,553,464,737.46 | 1.99 | 1,148,128,947.02 | 1.63 | 35.30 | | Other Current Assets | 217,683,597.95 | 0.28 | 111,098,112.72 | 0.16 | 95.94 | | Fixed Assets | 39,665,437,597.49 | 50.93 | 40,409,228,783.38 | 57.22 | -1.84 | | Construction in Progress | 9,895,871,300.84 | 12.71 | 6,557,083,368.72 | 9.29 | 50.92 | | Right-of-Use Assets | 1,183,095,412.14 | 1.52 | 634,059,245.81 | 0.90 | 86.59 | | Short-Term Borrowings | 12,212,110,440.04 | 15.68 | 8,804,982,458.17 | 12.47 | 38.70 | | Derivative Financial Liabilities | 350,563.23 | 0.0005 | - | - | - | | Contract Liabilities | 369,402,678.35 | 0.47 | 299,538,910.71 | 0.42 | 23.32 | | Taxes Payable | 144,837,965.19 | 0.19 | 558,615,730.95 | 0.79 | -74.07 | | Other Payables | 4,172,443,130.96 | 5.36 | 2,159,454,183.86 | 3.06 | 93.22 | | Non-Current Liabilities Due Within One Year | 4,200,763,201.00 | 5.39 | 3,336,400,669.99 | 4.72 | 25.91 | | Lease Liabilities | 507,662,672.34 | 0.65 | 225,599,269.14 | 0.32 | 125.03 | | Long-Term Payables | 347,706,060.33 | 0.45 | 170,766,800.07 | 0.24 | 103.61 | | Deferred Income Tax Liabilities | 299,135,281.42 | 0.38 | 49,671,501.68 | 0.07 | 502.23 | - Overseas assets amounted to 73.59187 billion yuan, accounting for 94.49% of total assets[91] - Deferred income tax liabilities increased by 502.23% compared to the end of the previous year, mainly due to the impact of accruing deferred income tax liabilities for estimated dividends from overseas subsidiaries to the domestic parent company at a 40% cash dividend ratio[90] (IV) Analysis of Investment Status The company actively pursued equity investments, totaling 27 companies with an investment cost of 3.28 billion yuan, and invested 13.42 billion yuan in new energy-efficient vessels, while also entering into forward foreign exchange contracts for hedging purposes - As of the end of the reporting period, there were a total of 27 external equity investment companies, with a total investment cost of 3.278 billion yuan and a total book value of 6.970 billion yuan[101] Significant Non-Equity Investment Projects | Project Name | Cumulative Investment (yuan) | Current Year Investment (yuan) | Project Progress | Funding Source | | :--- | :--- | :--- | :--- | :--- | | 1 New Generation Energy-Efficient VLCC Oil Tanker (2023, Methanol Dual-Fuel) | 368,064,684.06 | 445,339,984.06 | 57.6% | Own Funds | | 2 New Generation Energy-Efficient AFRAMAX Oil Tankers (2023) | 127,377,042.47 | 254,935,200.47 | 19.65% | Own Funds | | 5 New Generation Energy-Efficient VLCC Oil Tankers (2024) | 861,312,000.00 | 430,008,000.00 | 20.00% | Own Funds | | 5 New Generation Energy-Efficient AFRAMAX Oil Tankers (2024) | 515,286,880.00 | 278,788,520.00 | 20.00% | Own Funds | | 4 175,000 m³ LNG Carriers (Phase I) | 2,590,054,782.55 | 920,751,697.82 | 74.46% | Own Funds/Borrowings | | 4 175,000 m³ LNG Carriers (Phase II) | 2,886,255,856.17 | 883,438,276.17 | 39.96% | Own Funds/Borrowings | | 6 174,000 m³ LNG Carriers + 4 271,000 m³ LNG Carriers (Kanon Project) | 2,250,244,440.00 | 323,830,000.00 | 10.00% | Own Funds | | 4 62,000 DWT Multi-Purpose Vessels | 798,093,419.07 | 365,686,889.07 | 59.86% | Own Funds | | 4 82,000 DWT Bulk Carriers | 577,816,667.53 | 266,981,061.53 | 51.06% | Own Funds | | 10 210,000 DWT Bulk Carriers | 821,552,711.90 | 158,849,516.10 | 15.00% | Own Funds | | 2 9,300 CEU + 4 7,800 CEU Ro-Ro Vessels (Methanol Dual-Fuel) | 1,418,541,924.32 | 551,314,010.22 | 35.42% | Own Funds | | Total | 13,419,433,866.07 | 4,675,089,697.44 | - | - | - During the reporting period, new forward foreign exchange purchase contracts for RMB against USD were added for hedging future foreign currency cash inflows from offshore RMB financing to pay for vessel construction, resulting in a fair value loss of 350,600 yuan at period-end[106] (V) Significant Asset and Equity Disposals In H1 2025, the company sold an older, non-energy-efficient Aframax oil tanker, "New Award," as part of its strategic fleet optimization - The company sold 1 non-energy-efficient Aframax oil tanker, "New Award," with a deadweight tonnage of 109,804 DWT, on June 29, 2025, during the first half of 2025[107][108] (VI) Analysis of Major Holding and Participating Companies During the reporting period, the company established two new wholly-owned subsidiaries, Zhejiang Free Trade Zone Bulk Digital Trade Technology Co., Ltd. and ENERGY LUMINA SHIPPING PTE. LTD., to enhance digital shipping services and fuel supply capabilities - Zhejiang Free Trade Zone Bulk Digital Trade Technology Co., Ltd. was newly established to primarily provide digital shipping services, aiming to increase the company's revenue from smart shipping digitalization in the future[109] - ENERGY LUMINA SHIPPING PTE. LTD. was newly established to primarily hold 1 fuel bunkering vessel, enhancing the company's fuel supply capability[109] Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (yuan/USD) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CMES Tanker Holdings Inc. | Subsidiary | Oil Tanker Shipping | 71,668 USD | 29,129,976,128.60 | 13,596,617,351.02 | 4,443,453,736.13 | 1,293,219,683.85 | 1,293,181,620.96 | | CMES BULKER HOLDINGS INC. | Subsidiary | Dry Bulk Shipping | 71,668 USD | 19,549,086,540.74 | 13,325,193,203.22 | 2,850,667,503.24 | 321,322,388.19 | 325,396,023.11 | | CMES LNG Carrier Investment Inc. | Subsidiary | LNG Shipping | 71,668 USD | 9,002,131,963.23 | 3,576,444,153.53 | 59,005,378.32 | 366,941,798.52 | 366,941,798.52 | | Sinotrans Container Lines Co., Ltd. | Subsidiary | Container Shipping | 4,000,000,000 yuan | 5,970,216,451.60 | 3,221,516,400.51 | 3,019,787,028.32 | 666,260,177.59 | 627,567,308.34 | | Guangzhou CMES Ro-Ro Transportation Co., Ltd. | Subsidiary | Ro-Ro Shipping | 1,262,940,503 yuan | 2,059,067,426.54 | 1,460,678,707.95 | 816,043,333.18 | 139,307,301.82 | 106,341,078.75 | | Shanghai CMES Minghua Shipping Co., Ltd. | Subsidiary | General Cargo Shipping | 2,464,292,239 yuan | 3,581,285,332.06 | 2,994,816,409.38 | 892,754,004.88 | 85,508,707.00 | 85,520,631.39 | | China LNG Shipping (Holdings) Co., Ltd. | Associate | LNG Shipping | 4,934,846,001 yuan | 11,876,260,710.53 | 9,766,720,851.40 | 574,924,651.80 | 601,930,802.66 | 601,887,651.27 | V. Other Disclosures This section outlines seven major risks the company faces, including macroeconomic, geopolitical, economic sanctions, environmental policies, shipping market fluctuations, and safety production risks, highlighting their potential impact on operations and strategic goals - Macroeconomic risks: The international shipping industry faces a complex and volatile macroeconomic environment, with trade disputes, geopolitical conflicts, and policy uncertainties continuing to affect the company's daily operations and intensifying freight rate fluctuations[111] - Geopolitical risks: Armed conflicts in key regions and shipping lanes may lead to soaring energy prices, route disruptions, vessel detours, port congestion, and increased insurance costs, driving up transportation costs and impacting operating performance[112] - Economic sanctions and export control compliance risks: The complex international political landscape increases the company's exposure to economic sanctions and export control risks; failure to effectively implement compliance systems may result in investigations, penalties, or blacklisting[113] - Environmental protection and emission reduction policy risks: International Maritime Organization (IMO) greenhouse gas emission reduction policies will significantly increase fuel costs and expenses for the shipping industry, substantially impacting existing vessel modifications, newbuilding investment decisions, and clean fuel selection[114] - Shipping market fluctuation risks: Global economic conditions and geopolitical changes may lead to significant shifts in shipping market supply and demand, resulting in overcapacity and declining freight rates, affecting the company's performance[115] - Safety production risks: Vessel navigation faces extreme natural disasters and human-induced risks such as piracy attacks; poor safety management, equipment failures, or operational errors may lead to accidents, causing reputational and economic losses[116] Section IV Corporate Governance, Environment, and Society This section covers changes in directors, supervisors, and senior management, the semi-annual profit distribution plan, progress of the equity incentive plan, and specific actions in environmental and social responsibility, including IMO emission reduction, green vessel construction, and rural revitalization I. Changes in Directors, Supervisors, and Senior Management During the reporting period, Ms. Jiang Hongmei, a supervisor, and Ms. Shi Xiuli, Chief Legal Counsel and Chief Compliance Officer, resigned from their positions Changes in Directors, Supervisors, and Senior Management | Name | Position | Change | | :--- | :--- | :--- | | Jiang Hongmei | Supervisor | Resigned | | Shi Xiuli | Chief Legal Counsel, Chief Compliance Officer | Resigned | II. Profit Distribution or Capital Reserve Conversion Plan The board approved the semi-annual profit distribution plan, proposing a cash dividend of 0.7 yuan (tax inclusive) per 10 shares based on the total share capital as of June 30, 2025, totaling 565 million yuan - The proposed semi-annual profit distribution plan is a dividend of 0.7 yuan (tax inclusive) per 10 shares[119] - Total cash dividends distributed amounted to 565.2177 million yuan[119] - Total cash dividends and share repurchases for the first half of the year amounted to 875.7643 million yuan, representing 41.22% of the net profit attributable to listed company shareholders for the first half of the year[120] III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures On March 26, 2025, the board approved the cancellation of 112.943 million unexercised stock options from the equity incentive plan - On March 26, 2025, the board of directors approved the cancellation of 112.943 million unexercised stock options from the equity incentive plan for some incentive recipients[121] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company actively participates in IMO emission reduction rule-making, progresses in green vessel construction and energy-saving upgrades, and implements digital initiatives to monitor carbon emissions and optimize fleet structure for environmental sustainability - The company actively participates in IMO emission reduction rule-making, providing professional opinions on 12 proposals for mid-term emission reduction measures and attending the 83rd session of the IMO MEPC[123] - Construction of green vessels, including methanol dual-fuel PCTC and VLCC, and new energy-efficient bulk carriers, is progressing in an orderly manner[123] - During the reporting period, 24 energy-saving and environmental protection technology upgrades were completed, reducing vessel fuel consumption by 40,100 tons, saving USD 14.61 million in transportation costs, and reducing carbon emissions by 125,900 tons through refined management[123] - The company is fully advancing the construction of "Integrated Operation Management Project, Smart + Green Shipping Project, and Shipping Digital Ecosystem Innovation Project" to create "Ship Carbon Intelligence" and "Ship Smart Assistant" platforms, promoting paperless bills of lading[124] - Through energy-saving modifications and refined management of core equipment on 27 vessels, the company actively adjusted its fleet structure, with energy-efficient vessels accounting for 65% of the total number and 72% of the total tonnage[124] V. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization The company continues to purchase agricultural products from Yunnan Chuxiong, Jiangxi Ji'an, and Xinjiang Shache County, deepening its long-term consumer assistance mechanism, with cumulative aid exceeding 2.18 million yuan over the past five years - The company continues to purchase agricultural products from Yunnan Chuxiong, Jiangxi Ji'an, and Xinjiang Shache County, actively fulfilling its social responsibility and contributing to rural revitalization[125] - The company has continuously strengthened its long-term consumer assistance mechanism for 6 years, with cumulative consumer assistance exceeding 2.18 million yuan over the past 5 years[125] - In H1 2025, the company's agricultural assistance expenditure target was 350,000 yuan, which is progressing in an orderly manner as planned[125] Section V Significant Matters This section details the company's fulfillment of commitments, including share lock-ups and resolutions for related-party transactions and competition, confirms the integrity of the company and its controlling shareholders, and outlines significant related-party transactions, guarantees, and other major contracts I. Fulfillment of Commitments The company and its controlling shareholder, China Merchants Group, strictly fulfilled all commitments during the reporting period, including share lock-ups and resolutions for related-party transactions and competition, safeguarding company and minority shareholder interests - China Merchants Steamship committed to complying with the lock-up period for target shares under Article 2.3.5 of the "Asset Purchase Agreement by Issuing Shares" signed on September 1, 2017[127] - China Merchants Group committed to minimizing and reducing related-party transactions with CMES and its controlled economic entities, and to conducting unavoidable related-party transactions based on market principles[127] - China Merchants Group committed to resolving the horizontal competition issue in offshore crude oil transportation between CMES and Sinotrans & CSC Oil Transportation by the end of June 2020, and to steadily advancing the integration of Sinotrans Shipping's dry bulk business with CMES's dry bulk business[127][128] IX. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or overdue debts - During the reporting period, the integrity status of the company, its controlling shareholder, and actual controller was good, with no unfulfilled court judgments or significant overdue debts[131] X. Significant Related Party Transactions This section discloses the company's H1 2025 daily operating related-party transactions, including vessel repair, oil transportation, marine fuel procurement, and crew management, along with related-party receivables, payables, and financial business with affiliated finance companies 2025 H1 Actual Daily Related Party Transactions | No. | Related Party | Item | H1 2025 Actual Transaction Amount (yuan) | | :--- | :--- | :--- | :--- | | 1 | China Merchants Industry Holdings Co., Ltd. and its subsidiaries | Vessel construction and repair | 139 million | | 2 | China Petrochemical Corporation and its subsidiaries | Oil transportation fees and vessel charter fees | 1.387 billion | | | | Procurement of marine fuel and lubricants | 969 million | | 3 | China Merchants Haitong Trading Co., Ltd. and its subsidiaries | Supply of marine equipment and materials/spare parts | 100 million | | 4 | Guangzhou Haishun Maritime Services Co., Ltd. and its subsidiaries | Crew management/agency fees | 114 million | | 5 | Sinotrans & CSC Holdings Co., Ltd. and its subsidiaries | Cargo freight and vessel charter fees; site rental fees, vessel repair, port charges, and berthing fees; procurement of marine fuel and lubricants; marine oil sales; crew management/agency fees | 138 million | | 6 | Sinotrans Ltd. and its subsidiaries | Cargo freight, freight forwarding income, site rental fees, port charges, and berthing fees | 594 million | | 7 | Liaogang Group | Site rental fees, port charges, and berthing fees | 26 million | | 8 | China Merchants Shared Services Co., Ltd. | Financial accounting service fees | 240,000 | - The company has deposit business with China Merchants Group Finance Co., Ltd., China Merchants Bank Co., Ltd., and China Merchants Securities Co., Ltd., with total deposit balances of 1.681 billion yuan at period-end[145] - The company has loan business with China Merchants Group Finance Co., Ltd., China Merchants Steamship Co., Ltd., China Merchants Bank Co., Ltd., and Wing Lung Bank Limited, with total loan balances of 4.161 billion yuan at period-end[148] XI. Significant Contracts and Their Fulfillment This section details significant guarantees provided by the company, totaling 83.05% of its net assets, for joint ventures and associates, and outlines the operating day lock-in rates and locked-in charter rates for its oil tanker, dry bulk, and general cargo fleets Company's Total Guarantees (Including Guarantees for Subsidiaries) | Indicator | Amount (USD million) | | :--- | :--- | | Total Guarantee Balance at Period End (A) (Excluding guarantees for subsidiaries) | 862.4585 | | Total Guarantees for Subsidiaries Incurred During Reporting Period | 628.00 | | Total Guarantee Balance for Subsidiaries at Period End (B) | 3,763.8231 | | Total Guarantees (A+B) | 4,626.2816 | | Total Guarantees as % of Company's Net Assets | 83.05% | | Of which: Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70% (D) | 4,183.5211 | | Amount of Total Guarantees Exceeding 50% of Net Assets (E) | 1,811.9604 | | Total of the Above Three Guarantee Amounts (C+D+E) | 5,995.4815 | - The oil tanker fleet (proprietary VLCC and Aframax oil tankers) had an operating day lock-in rate of approximately 69.73% in 2025, with VLCCs chartered out for one year or more at approximately 7.69%, and locked-in charter rates all higher than the average freight rates for the reporting period[153] - The dry bulk fleets had a 12-month rolling lock-in rate of approximately 20.5%, with locked-in charter rates higher than the expected freight rates corresponding to FFA[153] - The general cargo fleet had a 12-month rolling lock-in rate of approximately 13.25%, with locked-in charter rates significantly higher than the realized and FFA-corresponding expected freight rates for the reporting period[153] Section VI Share Changes and Shareholder Information This section details the company's H1 2025 share capital changes, primarily due to share repurchases and cancellations, and lists the top ten shareholders and changes in holdings of directors, supervisors, and senior management I. Share Capital Changes The company completed its share repurchase plan on May 20, 2025, repurchasing 69.267851 million shares, or 0.85% of total share capital, which were subsequently canceled on May 22, 2025, reducing the total share capital Share Capital Change Table | | Before Change | Change (+,-) | After Change | | :--- | :--- | :--- | :--- | | | Number of Shares | Proportion (%) | Other | Subtotal | Number of Shares | Proportion (%) | | II. Unlimited Shares | 8,143,806,353 | 100 | -69,267,851 | -69,267,851 | 8,074,538,502 | 100 | | III. Total Shares | 8,143,806,353 | 100 | -69,267,851 | -69,267,851 | 8,074,538,502 | 100 | - The company actually repurchased 69.267851 million shares, accounting for 0.85% of the total share capital, at a price range of 5.74 yuan/share to 7.05 yuan/share, with an average price of 6.40 yuan/share, using a total of 442.9766 million yuan[158] - The company canceled all repurchased shares with China Securities Depository and Clearing Corporation Limited on May 22, 2025[158] - On May 27, 2025, the company convened a board meeting and approved the "Proposal on Terminating Participation in Antong Holdings Co., Ltd.'s Major Asset Restructuring and Spin-off Listing of Subsidiaries," agreeing to terminate the spin-off[160] II. Shareholder Information As of the end of the reporting period, the company had 114,493 common shareholders. Top ten shareholders include China Merchants Steamship Co., Ltd. with 54.48%, China Petrochemical Corporation with 13.57%, and Hong Kong Securities Clearing Company Limited with 2.93% - As of the end of the reporting period, the total number of common shareholders was 114,493 households[162] Top Ten Shareholders' Shareholding | Shareholder Name (Full) | Change During Reporting Period | Shares Held at Period End | Proportion (%) | Shareholder Type | | :--- | :--- | :--- | :--- | :--- | | China Merchants Steamship Co., Ltd. | 0 | 4,399,208,563 | 54.48 | State-owned Legal Person | | China Petrochemical Corporation | 0 | 1,095,463,711 | 13.57 | State | | Hong Kong Securities Clearing Company Limited | -64,927,053 | 236,263,582 | 2.93 | Overseas Legal Person | | China Chengtong Holdings Group Ltd. | 194,738,460 | 194,738,460 | 2.41 | Other | | Industrial and Commercial Bank of China Co., Ltd. - Huatai-PineBridge CSI 300 ETF | 1,496,260 | 57,680,775 | 0.71 | Other | | China Pacific Life Insurance Co., Ltd. - Traditional Insurance High Dividend Stock Management Portfolio | 4,999,940 | 42,235,687 | 0.52 | Other | | China Construction Bank Co., Ltd. - E Fund CSI 300 ETF Initiated Fund | 2,220,500 | 41,006,443 | 0.51 | Other | | Sinopec Group Assets Management Co., Ltd. | 0 | 38,757,523 | 0.48 | State-owned Legal Person | | China Pacific Life Insurance Co., Ltd. - Dividend - Individual Dividend | 903,080 | 37,256,919 | 0.46 | Other | | Wu Yibing | 2,566,900 | 36,920,856 | 0.46 | Domestic Natural Person | III. Directors, Supervisors, and Senior Management Information During the reporting period, the shareholdings of the company's directors, supervisors, and senior management remained stable, with no changes Shareholding Changes of Current and Resigned Directors, Supervisors, and Senior Management During the Reporting Period | Name | Position | Shares Held at Period Start | Shares Held at Period End | Change in Shares During Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Feng Boming | Chairman | - | - | - | - | | Liu Zhenhua | Vice Chairman | - | - | - | - | | Chen Xue | Vice Chairman | - | - | - | - | | Wang Yongxin | Director, General Manager | 1,121,000 | 1,121,000 | - | - | | Zhong Fuliang | Director | - | - | - | - | | Yu Zhiliang | Director | - | - | - | - | | Tao Wu | Former Director | - | - | - | - | | Qu Baozhi | Director | - | - | - | - | | Deng Huangjun | Independent Director | - | - | - | - | | Sheng Muxian | Independent Director | - | - | - | - | | Zou Yingying | Independent Director | - | - | - | - | | Wang Yingbo | Independent Director | - | - | - | - | | Sun Xiangyi | Chairman of Supervisory Board | - | - | - | - | | Jiang Hongmei | Supervisor | - | - | - | - | | Zhuang Jie | Employee Supervisor | - | - | - | - | | Xu Hui | Deputy General Manager | 321,120 | 321,120 | - | - | | Lou Dongyang | CFO | - | - | - | - | | Shi Xiuli | Former Chief Legal Counsel, Chief Compliance Officer | - | - | - | - | | Sun Jianfeng | Deputy General Manager | - | - | - | - | | Hu Bin | Deputy General Manager, Chief Captain | - | - | - | - | | Huang Maosheng | Deputy General Manager | - | - | - | - | | Zhao Chunji | Former Deputy General Manager | - | - | - | - | | Kong Kang | Board Secretary | 750,360 | 750,360 | - | - | Section VII Bond-Related Information This section confirms that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[170] - The company has no convertible corporate bonds[170] Section VIII Financial Report This section includes the company's H1 2025 unaudited consolidated and parent company financial statements, covering balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxation, and other financial items II. Financial Statements This section presents the company's H1 2025 consolidated and parent company financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, providing a comprehensive overview of the company's financial position and operating results - The consolidated balance sheet shows total assets of 77.880 billion yuan and total equity attributable to parent company owners of 40.461 billion yuan as of June 30, 2025[174] - The consolidated income statement shows total operating revenue of 12.585 billion yuan and net profit attributable to parent company shareholders of 2.125 billion yuan for January-June 2025[179][180] - The consolidated cash flow statement shows net cash flow from operating activities of 3.526 billion yuan for January-June 2025[186] III. Company Profile The company was established in Shanghai on December 31, 2004, primarily engaged in maritime transportation, with China Merchants Steamship as its controlling shareholder and China Merchants Group Co., Ltd. as its ultimate controlling party - China Merchants Energy Shipping Co., Ltd. was registered and established in Shanghai on December 31, 2004[199] - The Group belongs to the ocean shipping industry, primarily engaged in maritime transportation, with its main business scope including international dangerous goods shipping, energy sector investment, and maritime technical services[200] - The company's controlling shareholder is China Merchants Steamship, and its ultimate controlling party is China Merchants Group Co., Ltd[201] - As of June 30, 2025, the company's total share capital was 8.0745385 billion shares, all of which were unrestricted shares, accounting for 100.00% of the total share capital[199] V. Significant Accounting Policies and Accounting Estimates This section details the significant accounting policies and estimates used in preparing the company's financial statements, covering business combinations, consolidated financial statements, financial instrument classification, impairment, inventory valuation, revenue recognition, employee compensation, deferred income tax, and leases - The company's financial statements are prepared on a going concern basis, and its ability to continue as a going concern for 12 months from June 30, 2025, has been evaluated, with no significant doubts identified[203][204] - The Group prepares and discloses financial statements following the principle of materiality; for example, the standard for significant individually impaired receivables is a single amount of 10 million yuan or more[210] - The Group applies impairment accounting based on expected credit losses for financial assets measured at amortized cost, financial assets classified as fair value through other comprehensive income, lease receivables, contract assets, and financial guarantee contracts not measured at fair value through profit or loss[236] - The Group recognizes revenue when it has satisfied a performance obligation in the contract, meaning when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[315] VI. Taxation This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, education surcharges, enterprise income tax, and tonnage tax, along with tax incentives enjoyed by the company and its subsidiaries Main Tax Categories and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | VAT | Taxable value added | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Actual turnover tax paid | 7%, 5%, 1% | | Education Surcharge | Actual turnover tax paid | 3% | | Local Education Surcharge | Actual turnover tax paid | 2% | | Enterprise Income Tax | Taxable income | 0%, 15%-25% | | Tonnage Tax | Vessel tonnage | - | - The company is registered in China (Shanghai) Pilot Free Trade Zone, and the applicable enterprise income tax rate is 25%[337] - Changhang International Shipping (Singapore) Pte. Ltd., a subsidiary of the Group, obtained MSI-AIS qualification and enjoys a 10-year tax exemption on shipping business income starting from July 1, 2023[340] - Sinotrans Container Lines (Hainan) Co., Ltd., a subsidiary of the Group registered in Hainan Free Trade Port, enjoys a reduced enterprise income tax rate of 15%[341] VII. Notes to Consolidated Financial Statement Items This section provides detailed explanations for each item in the consolidated financial statements, including monetary funds, accounts receivable, contract assets, long-term equity investments, fixed assets, construction in progress, short-term borrowings, accounts payable, employee compensation, long-term borrowings, share capital, retained earnings, operating revenue, and operating costs - Period-end monetary funds were 7.051 billion yuan, an increase of 53.64% from the beginning of the period, mainly due to the combined effect of reduced net cash outflow from investing activities and increased net cash inflow from financing activities[343] - Period-end accounts receivable book value was 1.553 billion yuan, an increase of 35.30% from the beginning of the period, mainly due to slight increases influenced by customer settlement progress[89][90] - Period-end fixed assets book value was 39.665 billion yuan, a decrease of 1.84% from the beginning of the period, mainly due to the disposal of an oil tanker during the reporting period[89][90] - Period-end construction in progress book value was 9.896 billion yuan, an increase of 50.92% from the beginning of the period, mainly due to continuous increased investment in new vessels during the reporting period[89][90] - Period-end short-term borrowings were 12.212 billion yuan, an increase of 38.70% from the beginning of the period, mainly due to increased short-term bank borrowings for working capital during the reporting period[89][90] - Period-end other payables were 4.172 billion yuan, an increase of 93.22% from the beginning of the period, mainly due to increased payables for vessel construction recognized based on actual completion progress of newbuildings during the reporting period[89][90] - Period-end share capital was 8.075 billion shares, a decrease of 69.2678 million shares from the beginning of the period, due to the cancellation of repurchased treasury shares this year[462] - For H1 2025, operating revenue was 12.585 billion yuan, and operating cost was 9.622 billion yuan[476] VIII. Research and Development Expenses This section details the company's H1 2025 R&D expenditures, including expensed and capitalized amounts, across various projects such as vessel operational efficiency optimization, smart vessel platforms, methanol-fueled VLCC development, and greenhouse gas emission monitoring R&D Expenses by Nature of Expense | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Research on Multi-Source Collaborative Optimization Control Technology for Vessel Operational Energy Efficiency under Real Sea Conditions | 2,764,971.13 | 2,901,810.04 | | Research on Smart Vessel Ship-Based Service Platform Technology | 273,476.64 | - | | Development of Methanol Dual-Fuel Smart VLCC | 16,538.29 | 1,099.96 | | Research on Vessel Propulsion Layout Optimization Methods and High-Efficiency Main and Auxiliary Propulsion Technologies | 1,322,519.38 | 1,648,975.63 | | Research on Vessel Greenhouse Gas Emission Monitoring and Control Technologies | 785,802.79 | 87,452.07 | | High-Efficiency Drag Reduction and Propulsion System High-Efficiency Lubrication Technology for Vessels | 2,721,805.92 | 2,300,394.58 | | CMES Silk Road Cloud Chain Bulk Cargo Trade and Transportation Platform Project | 3,380,960.64 | 166,745.97 | | CMES Shipping Big Data Analysis and Algorithm Project | 587,400.00 | - | | CMES Shipping Operation Management Cloud Platform Project (Phase I) | 1,179,000.00 | - | | Smart Consolidated Financial Statement Information System Construction Project | 1,081,234.00 | 2,310.00 | | Carbon Monitoring Visualization Platform Project | 54,437.00 | - | | Total | 14,168,145.79 | 8,162,068.79 | | Of which: Expensed R&D | 7,885,114.15 | 6,939,732.28 | | Capitalized R&D | 6,283,031.64 | 1,222,336.51 | IX. Changes in Consolidation Scope This section explains changes in the company's consolidated financial statement scope, with the addition of two new wholly-owned subsidiaries, Zhejiang Free Trade Zone Bulk Digital Trade Technology Co., Ltd. and ENERGY LUMINA SHIPPING PTE. LTD., increasing the total to 281 subsidiaries - The Group's consolidated financial statement scope includes 281 subsidiaries[526] - This year, 2 wholly-owned subsidiaries were newly established: Zhejiang Free Trade Zone Bulk Digital Trade Technology Co., Ltd. and ENERGY LUMINA SHIPPING PTE. LTD[526] X. Interests in Other Entities This section details the company's interests in subsidiaries, joint ventures, and associates, including the composition of the enterprise group, key non-wholly-owned subsidiaries, and major financial information for significant joint ventures and associates Significant Non-Wholly-Owned Subsidiaries | Subsidiary Name | Minority Shareholding (%) | Profit/Loss Attributable to Minority Shareholders (yuan) | Dividends Declared to Minority Shareholders (yuan) | Minority Interest Balance at Period End (yuan) | | :--- | :--- | :--- | :--- | :--- | | Guangzhou CMES Ro-Ro Transportation Co., Ltd. | 30 | 31,801,904.03 | 98,700,000.00 | 431,809,691.82 | Key Financial Information of Significant Joint Ventures | | Period-End Balance/Current Period Amount (yuan) | Period-Start Balance/Prior Period Amount (yuan) | | :--- | :--- | :--- | | | China LNG Shipping (Holdings) Co., Ltd. | China LNG Shipping (Holdings) Co., Ltd. | | Total Assets | 11,876,260,710.53 | 11,655,524,820.44 | | Total Liabilities | 2,109,539,859.13 | 2,265,352,577.28 | | Equity Attributable to Parent Company Shareholders | 8,623,046,795.24 | 8,159,852,859.50 | | Operating Revenue | 574,924,651.80 | 611,940,834.00 | | Net Profit | 601,887,651.27 | 575,888,586.73 | | Total Comprehensive Income | 545,790,555.63 | 633,017,583.37 | Key Financial Information of Significant Associates | | Period-End Balance/Current Period Amount (yuan) | Period-Start Balance/Prior Period Amount (yuan) | | :--- | :--- | :--- | | | VLOC Maritime Marshall Limited | VLOC Maritime Marshall Limited | | Total Assets | 7,425,187,321.28 | 7,628,955,527.59 | | Total Liabilities | 6,576,453,982.08 | 6,849,911,219.06 | | Equity Attributable to Parent Company Shareholders | 848,733,339.20 | 779,044,308.53 | | Operating Revenue | 1,002,741,654.70 | 1,013,550,083.34 | | Net Profit | 72,207,929.47 | 46,715,853.73 | | Total Comprehensive Income | 69,689,030.67 | 46,715,853.73 | XI. Government Grants This section discloses government grant-related liability items and grants recognized in current profit or loss, with new grants totaling 2.982 million yuan for projects like smart vessel platforms and methanol-fueled VLCC development Government Grant-Related Liability Items | Financial Statement Item | Period-Start Balance (yuan) | New Grants This Period (yuan) | Amount Recognized in Non-Operating Income This Period (yuan) | Transferred to Other Income This Period (yuan) | Other Changes This Period (yuan) | Period-End Balance (yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shore Power Subsidy | 15,078,508.84 | - | - | 600,406.68 | - | 14,478,102.16 | Asset-related | | Changfalong Ro-Ro Vessel Project Funding | 3,458,333.78 | - | - | 124,999.98 | - | 3,333,333.80 | Asset-related | | 170,000 m³ Mark III LNG Carrier Engineering Development Project | 1,130,000.00 | - | - | - | - | 1,130,000.00 | Income-related | | Research on Key Technologies for Trusted Computing in Cross-Departmental Data Circulation for Shipping Trade Based on Blockchain | 202,000.00 | - | - | - | - | 202,000.00 | Income-related | | Research on Smart Vessel Ship-Based Service Platform Technology | - | 1,440,000.00 | - | - | - | 1,440,000.00 | Income-related | | Development of Methanol Dual-Fuel Smart VLCC Project | - | 3,185,000.00 | - | - | - | 3,185,000.00 | Income-related | | Engineering Application Research of Wing Sail Propulsion System | - | 2,000,000.00 | - | - | - | 2,000,000.00 | Income-related | | Implementation and Demonstration Application of Shipping Trade Cross-Departmental Data Element Circulation Platform | - | 420,000.00 | - | - | - | 420,000.00 | Income-related | | Vessel Operational Energy Efficiency Improvement and Emission Control Technology | - | 600,000.00 | - | - | - | 600,000.00 | Income-related | | Total | 24,891,842.62 | 2,982,000.00 | - | 725,406.66 | - | 27,148,435.96 | / | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Income-related | 39,371,023.48 | 40,396,496.73 | | Total | 39,371,023.48 | 40,396,496.73 | XII. Risks Related to Financial Instruments This section outlines the company's financial instrument risks, primarily market risk (foreign exchange and interest rate), credit risk, and liquidity risk, managed through specialized departments to maintain control within defined limits - The Group's objective in risk management is to achieve an appropriate balance between risk and return, minimizing the negative impact of risks on the Group's operating performance, and maximizing the interests of shareholders and other equity investors[545] - Foreign exchange risk sensitivity analysis shows that a 5% appreciation/depreciation of all foreign currencies against RMB would impact net profit and shareholders' equity by approximately 213 million yuan[550] - Interest rate risk sensitivity analysis shows that a 1% increase/decrease in floating interest rate bank borrowings would impact net profit and shareholders' equity by approximately 218 million yuan[552] - As of June 30, 2025, the Group's total current liabilities exceeded total current assets by 10.369 billion yuan[556] - As of June 30, 2025, the Group's unused offshore bank borrowing facilities amounted to USD 1.707 billion (equivalent to 12.234 billion yuan), and domestic borrowing facilities amounted to 968 million yuan, totaling more than the net current liabilities, thus management believes there is no significant liquidity risk[556] XIII. Disclosure of Fair Value Th